The board of the only listed property and construction business, the Malawi Property and Investment Company (Mpico) said it is not recommending any dividend for the year 2012.

This has been said by Mpico’s directors Dye Mawindo and Stewart Malata in an annual result statement published this week.

The company is on the Malawi Stock Exchange and shares are worth K2.10 this week.

“The Board is pleased to announce the results of the Group for the year ended 31 December, 2012. Income increased from K3.4 billion in 2011. Ordinary share capital to K4.2 billion in 2012 representing a 24 percent improvement.

Mawindo: Optimistic in 2013 outlook

“The profit for the year however reduced to K1.5 billion from K2 billion. This is as result of a significant write down on the costs incurred on the mall due to impairment. The Board is not recommending any dividend for the year 2012,” said Mpico.

The directors said Mpico operated in a challenging economic environment which was characterised by forex and fuel shortages, high levels of inflation and devaluation of the local currency.

However they expressed optimism in their outlook for 2013.

“In view of the mechanisms set up by the government for the recovery of the economy, we expect demand for office space to grow over the longer term and accordingly expect there to be real growth in rental income in the next financial year,” said Mpico.

Mpico is involved in the construction of the K10 billion Gateway Mall in Malawi’s Capita City of Lilongwe due last year but this has been further delayed and they said it is now due for completion in March, 2014.